2020 Fiscal Year Research-status Report
Determinants, wage inequality, and occupational risk exposure of informal workers: A comprehensive analysis with a case study of Thailand
| Project/Area Number |
20K22135
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| Research Institution | Waseda University |
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Principal Investigator |
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| Project Period (FY) |
2020-09-11 – 2022-03-31
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| Keywords | Informal worker / Occupational risk / Sectoral transition / Thailand / Wage inequality |
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| Outline of Annual Research Achievements |
Except the qualitative analysis, the research has been conducted according to the proposed schedule. Currently, the author is working on the quantitative analysis and expects to finish the first draft by the end of August 2021. The paper is scheduled to be presented at 14th International Conference on Thai Studies “Thailand at a Global Turning Point” on December 10-12, 2021, at Kyoto Terrsa, Kyoto, Japan.
To summarise the previous studies, what we know so far is the following. First, even though a large body of research has comprehensively examined the wage differentials between the formal and informal sectors in various countries, the results are highly country specific and mixed. Second, the literature on the determinants and the occupational risk exposure of informal workers are scarce and the findings are still inconclusive. Lastly, in the context of Thailand, there are very limited number of the studies in all aforementioned areas and these studies are likely to have estimation problems and in turn result in inconsistent estimates and noncausal interpretation.
The preliminary result shows the mean wages of formal workers is higher than that of informal workers, yielding a wage gap of 0.74. Wages were partially driven by the change in individual endowment such as gender, literacy, employment status and sector. The estimates indicate that changes in literacy, gender, labor force status, and sector employment contributed to the increase in wages.
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| Current Status of Research Progress |
Current Status of Research Progress
2: Research has progressed on the whole more than it was originally planned.
Reason
Due to the current situation of COVID-19, Waseda University does not allow all faculty members to travel abroad. Therefore, it is inevitable to omit the qualitative analysis part and to only rely on the quantitative analysis. If the situation allows, the follow-up qualitative analysis will be conducted.
Except the qualitative analysis, the research has been conducted according to the proposed schedule. Currently, the author is working on the quantitative analysis and expects to finish the first draft by the end of August 2021. The paper is scheduled to be presented at 14th International Conference on Thai Studies “Thailand at a Global Turning Point” on December 10-12, 2021, at Kyoto Terrsa, Kyoto, Japan.
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| Strategy for Future Research Activity |
This study plans to provide a comprehensive analysis of informal workers in Thailand. First, the study utilises cross-sectional probit regression analysis to examine the determinants of informal employment. Second, to examine the earnings gap between formal and informal workers, this study applies the Oaxaca-Blinder decomposition technique to see how much of the disparity can be explained by differences in observable and non-observable characteristics over time. This study then estimates Mincer wage equations at the mean (OLS regression) and at different quantiles of the wage distribution (quantile regression) with a pseudo-panel approach to identify the factors that explain differences in earnings. Third, a cross-sectional probit model is used to assess whether informal workers expose to higher occupational risks. All the analyses are based on the 2005-2018 Thai Informal Employment Surveys. With the unexplored dataset and the comprehensive estimation methods and research design, this study significantly contributes to the long-standing policy debates on determinants and wage inequality of informal workers. This study also introduces a new research area and policy debate concerning informal workers’ livelihoods and occupational risks and provides policy review and recommendations that enhance gender equality and equal income distribution within/between the formal and informal sectors; informal workers’ welfare and livelihoods, both in monetary and non-monetary terms; and a smooth transition of workers from the informal sector into the formal sector.
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| Causes of Carryover |
Due to the current situation of COVID-19, Waseda University does not allow all faculty members to travel abroad. Therefore, it is inevitable to omit the qualitative analysis part and to only rely on the quantitative analysis. If the situation allows, the follow-up qualitative analysis will be conducted.
Moreover, the presentation at an academic conference is scheduled to be in December, instead of March.
Conference: 14th International Conference on Thai Studies “Thailand at a Global Turning Point”
For more details on the conference please refer to: https://icts14.cseas.kyoto-u.ac.jp/
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